Alcatel to sell most plants by end of 2002

French industrial and technology giant Alcatel wants to get out of manufacturing.

Serge Tchuruk, chairman, says the company could sell off most of its plants by the end of 2002. The plan would see Alcatel offload as many as 100 factories to contract manufacturers (CEMs) and sign them up to make its mainstream products.

Tchuruk says Alcatel will retain only a small number of plants to be used for new or extremely complex products in markets, such as broadband access and optical networking.

Tchuruk adds that Alcatel has begun negotiations with staff over further redundancies, early retirement and job reductions through natural wastage.

The company has not said how many staff it wants to lose. Many of those at the offloaded manufacturing sides will probably be transferred to the incoming CEMs.